CIRP started in business of DHFL, ABG Shipyard, Bhushan Power & Steel

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Commercial insolvency solution process (CIRP) was started in the cases of DHFL, ABG shipyard and Bhushan Power and Steel (BPSL), and resolution plans were approved in cases of DHL and BPSL, with an amount recoverable to creditors of Rs 37,167 crore and Rs 19,895 crore respectively.

Various mechanisms are available for recovery, including, but not limited to, filing a lawsuit in civil or collections courts, action under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, filing for initiation of corporate insolvency resolution process (CIRP) in the National Company Court under the Insolvency and Bankruptcy Code, 2016, according to a written response from the Ministry of Finance in Lok Sabha on Monday.

“According to the inputs received from the Insolvency and Bankruptcy Board of India, CIRP was initiated in the case of DHFL, ABG Shipyard and Bhushan Power and Steel (BPSL), and resolution plans were approved in the case of DHFL and BPSL, with a recoverable amount to creditors of Rs 37,167 crores and Rs 19,895 crores respectively,” the reply said.

Furthermore, a liquidation order was issued in the case of ABG Shipyard, and more than Rs.1,000 crore has been realized by the trustee from the sale of assets.

The Reserve Bank of India has informed that no bank has reported fraud related to H-Tech Auto, the ministry announced.

Furthermore, the Central Bureau of Investigation has communicated that it has filed cost sheets in the cases of DHFL, ABG Shipyard and BPSL.

In addition, the Directorate of Enforcement has notified that the proceeds of crimes amounting to Rs 10,232.43 crore have been seized and six persons have been arrested in these cases, under the provisions of the Money Laundering Prevention Act2002, added the answer.

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